Kyle Chassé / DD🐸

#ADPDataDisappoints U.S. Private Payrolls Miss Expectations, Raise Economic Concerns The latest ADP National Employment Report revealed a much weaker-than-expected private sector jobs gain in January, disappointing markets and adding to concerns over the health of the U.S. labor market. According to the ADP report, U.S. private employers added just 22,000 jobs in January, far below economists’ forecasts of around 45,000 positions and below the revised December figure. The modest increase underscores a broad slowdown in hiring momentum that has persisted since 2025. Job creation was uneven across sectors: education and health services led with 74,000 additions, while manufacturing and professional services shed jobs, highlighting ongoing structural shifts. Wage growth remained relatively stable, with average pay for job-stayers rising about 4.5% year-over-year. The disappointing ADP figures — released while the official government jobs report was delayed due to a recent shutdown — have contributed to broader market caution, with some traders and economists questioning the labor market’s resilience. Markets had anticipated stronger hiring that could influence Federal Reserve rate policy, but the weak print has heightened debate over the pace of economic activity. What This Means The weak reading suggests that employers remain cautious about expanding payrolls, even as wages stay firm, and may temper expectations for robust job growth in the coming months. Investors and policymakers are now watching closely for the official government jobs figures — expected later — to see if the broader labor market trends align with the ADP slowdown.